How to Buy in Panama
In Burica, the Panamanian government owns title to the land, but has granted Rights of Possession to private citizens. And we have acquired Rights of Possession from them.
What does this mean for you? It means you can use the property any way you want, just as if you held title to the land and that you would hold title to any improvements you make to the land and anything you build on it. You own the right to use the land, just as if you had the title. Except, because you don’t own the title, you don’t have to pay fealty or taxes, to the state.
How Rights of Possession and Holding the title differ:
Proving your claim to Rights of Possession
Selling the property
In proving your claim to the land, you can’t just show title, which means you have to do more legal legwork to make sure you can legally uphold your Rights of Possession. Basically, you have to show that the person you bought the Rights of Possession from actually did have proper claim on those rights.
We have done that for you, to excess in fact. We strongly encourage you to call us so we explain the extensive process we have gone through to investigate, ensure, and document your rights of property.
In addition to the legal legwork, you have to act as if it’s your property. When you build on your property and improve your property and maintain your property and use your property, you are establishing, beyond any doubt, that you physically hold the rights of use. And the courts will uphold that.
This is a huge reason why buying from a local, on-the-ground presence is so important. Because we’ve been establishing our rights of use of this property beyond any doubt, through everything we’ve done to and for it. And that certainty of ownership is entirely passed on to you, when you buy the property.
The second big question is, can you resell the property at a profit? Is there a market for Rights of Possession for Panamanian real estate? Absolutely! There is a huge market in ROP, which is routinely bought, sold and traded just as titled property is.
So can you sell your Rights of Possession to your Burica Property for a profit? Yes. Especially because of how cheaply you’re acquiring the property compared to comparable real estate.
Rights of Possession is somewhat unique to Latin American real estate, and often something of a curveball for North American investors, but at the end of the day, it represents more of a benefit than anything else – the benefit of not paying property taxes!
Yet you may have additional questions or concerns regarding rights of property and we invite you to call us to discuss them. We’re more than happy to explain this to you in depth./